Which of the Following Statements Is True About the U

question 163

Multiple Choice

Which of the following statements is true about the U.S. national debt?
I. Relative to the level of economic activity, the debt is well below the levels reached during
World War II.
II. The ratio of debt to GDP fell in the last years of the twentieth
Century; it began rising again in 2002 and has risen substantially since the 2008 recession.
III. Judged by international standards, the U.S. national debt relative to its GDP is above average among developed nations.

• A) I only
• B) II only
• C) III only
• D) I, II, and III

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Definitions:

Semiannually

Occurring twice a year, typically every six months, often used in the context of interest or dividend payment schedules or reporting periods.

Annual Interest Rate

The percentage rate charged or paid over a year for borrowing or saving money.

Present Value

The current value of a future amount of money or stream of cash flows given a specified rate of return, used in discounting to assess investment opportunities.

Compounded Quarterly

Compounded quarterly refers to the calculation of interest on the initial principal and the accumulated interest over previous periods every quarter.